Pinova inks deal to acquire flavor and fragrance company

23-Dec-2010 - Last updated on 23-Dec-2010 at 15:48 GMT

Specialty chemicals company Pinova has acquired the flavor and fragrance business of LyondellBasell, in a bid to expand and strengthen its global business.

LyondellBasell Flavors and Fragrance (LBFF) has more than 400 customers in 48 countries and is a global producer of terpene flavor and fragrance ingredients derived from natural and renewable raw materials, often used in oral care products.

LBFF will take on its new name, Renessenz, and will operate as an independent, sister company to Pinova, with manufacturing facilities and offices in Jacksonville, Florida and Brunswick, Georgia.

"We are very pleased to welcome LBFF into the Pinova family," said David Bookbinder, executive chairman of Pinova Holdings. "We plan to invest in LBFF and its people, just as we have done with Pinova, with the aim of generating growth by delighting our customers through innovation and outstanding service.”

Bookbinder believes that LBFF is a good strategic fit including a similar natural and renewable raw material platform. He also mentioned that LBFF shared Pinova’s commitment to community and employee involvement, safety and environmental responsibility.

“We are excited by this opportunity to grow our business and to continue to provide outstanding services to our global customer base. Pinova and Renessenz have strong business and personal relationships today and we look forward to growing with them," said Michael Wimberly, Vice President, Flavors and Fragrances, LyondellBasell Industries.

According to LyondellBasell, after tax, the transaction resulted in proceeds of approximately $150 million.

"This divestiture is consistent with our objective to focus on developing our core businesses of olefins and polyolefins, intermediates and derivatives, and refining and oxyfuels," said LyondellBasell CEO Jim Gallogly.

Pinova Holdings is a portfolio company of TorQuest Partners, a Canadian private equity firm which invested in Pinova earlier this year with the aim of growing the business on a global scale.

Matthew Chapman, a partner at TorQuest believes the acquisition of LBFF is a good opportunity to continue this growth.

“TorQuest originally invested in Pinova as a platform for growth in the specialty chemical sector. The acquisition of Renessenz represents the next step in that strategy. We believe Renessenz is well positioned to grow as a leading, global provider of flavor and fragrance ingredients derived from natural and renewable materials,” he said.

Together, the combined companies will have sales of more than $250m and about 450 employees.